M/S Maa Sheetla Udyog PVT. LTD. vs. Commissioner Central Goods And Service Tax
Facts
The petitioner received a show cause notice on August 30, 2022, under Rule 142(1) of the CGST Rules, proposing to demand and recover GST amounting to ₹1,98,68,659/- under Section 74 of the CGST Act, 2017. The petitioner has already deposited ₹80 lakh against this demand. The petitioner filed a writ petition seeking to quash the show cause notice and to be granted a reasonable time to pay the balance outstanding amount of ₹1,18,68,659/- in installments. The petitioner is not disputing the demanded GST amount but seeks permission to pay it in installments.
Held
The Court held that the petitioner is not challenging the demand itself but is seeking a procedural remedy to pay the admitted liability in installments. The Court noted the petitioner's submission that their initial application for installments was not in the correct format and did not cite the appropriate provision. The petitioner requested permission to file a fresh application in terms of CGST Rule 158(1) read with CGST FORM GST DRC-20. The respondents had no objection to this prayer. Consequently, the Court disposed of the writ petition by permitting the petitioner to file a fresh application in the prescribed form within ten days. If such an application is filed within the stipulated time, the Competent Authority is directed to consider and decide it as per law within four weeks thereafter. The Court implicitly acknowledged the petitioner's right to seek installment payments under the relevant provisions, provided the procedural requirements are met.
Key Issues
1. Whether the writ petition is premature as it challenges a show cause notice? 2. Whether the petitioner is entitled to deposit the demanded GST amount in installments, considering the provisions of Section 80 of the CGST Act, 2017? 3. Whether the petitioner should be permitted to file a fresh application for installment payment in the prescribed format and under the correct legal provision? Petitioner's arguments: The petitioner is not challenging the demanded GST amount and only seeks permission to deposit it in installments, relying on Section 80 of the CGST Act, 2017. The petitioner acknowledges that their initial application for installments was not in the proper format and did not cite the correct provision, and therefore requests permission to file a fresh application in terms of CGST Rule 158(1) read with CGST FORM GST DRC-20. Respondents' arguments: The respondents argue that the writ petition is premature as it challenges a show cause notice. They also point out that the petitioner's prayer for installment payment is silent regarding interest and penalty, which are also mentioned in the impugned notice. The respondents contend that since the petitioner is not disputing the liability, they will be liable for interest and penalty as per law.
Sections Cited
Section 74, Section 80, Rule 142(1), Rule 158(1)
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SL. No Date Office Notes, reports, orders or proceedings or directions and Registrar’s order with Signatures COURT’S OR JUDGES’S ORDERS
WPMS No. 2596 of 2023 Hon’ble Manoj Kumar Tiwari, J.
Mr. Bhupesh Kandpal, learned counsel for the petitioner.
Mr. Shobhit Saharia, learned counsel for the respondents.
A show cause notice was issued to petitioner under Rule 142(1) of CGST Rule on 30.08.2022, whereby he was asked to show cause as to why GST amounting to ₹1,98,68,659/-, not paid by him should not be demanded and recovered from him under Section 74 of the CGST Act, 2017. Learned counsel for the petitioner submits that against the said demand, petitioner has deposited a sum of ₹80 lakh. In this writ petition, petitioner has sought the following relief:- (i) A writ order or direction in the nature of certiorari quashing the impugned order dated 30.08.2022 (Annexure No. 6 to the writ petition) passed by the respondent no. 2 being violative of principles of law.
(ii) A writ order or direction in the nature of mandamus commanding the respondent authorities to consider the application of the petitioner and further di
The judgment continues below.
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